What was the equipment lease expense for Coffee News in 2023?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
ontract as a lease if consideration in the contract allocated to the lease component is greater than the consideration allocated to any non-lease
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the equipment lease expense totaled $1,749 in 2023. The document also notes equipment is leased on a month-to-month basis.
For a prospective franchisee, this indicates that Coffee News itself does not have significant capital expenditures related to equipment. This suggests that franchisees may also have the option to lease equipment on a short-term basis, providing flexibility.
However, franchisees should inquire about what specific equipment is being referenced, whether this equipment is essential for their own Coffee News operations, and what typical monthly lease costs they might expect to incur. Understanding these costs will be important for projecting their own operating expenses and profitability.